In response to criticism from the opposition PFP, the Bureau of National Health Insurance (中央健保局) yesterday said it has implemented a number of measures to balance the finances of the National Health Insurance Project.
In a press conference yesterday, PFP legislator Chen Chao-jung (陳朝容) alleged that certain flaws in the project would eventually cause "the health-care system to collapse."
According to the bureau, the project currently bears monthly deficits of up to NT$2 billion. The bureau's income for the insurance program has grown by 4 percent annually, while the expenditure, paid out to medical institutions, has grown by 9.1 percent.
Chen further pointed out yesterday that the program's fund reserves are expected to be insufficient by December -- lower than NT$25 billion, which is the average amount of medical expenditures the bureau hands over to medical institutions for the program.
Chen also added that the insufficient fund reserves indicates that the project is suffering from serious financial imbalances, and that, in such a situation, related regulations recommend further adjustments of insurance premiums to ensure its continuing operation.
"But most likely, the ruling party would not allow the increase of premiums due to concerns over consequential vote loss in upcoming elections," said Chen.
Chen called for a review of the existing operational problems facing the program to cut unnecessary expenditure to help balance the programs budget.
Analyzing the program's finances, Liu Chien-hsiang (劉見祥), the bureau's deputy general manger, said the bureau has been seeking financial resources.
"It's still too early to decide the level of sufficiency of the program's reserve funds and the overall financial situation.
"The reserves should be sufficient till December and the premiums don't necessarily have to be adjusted so soon," he said.
Liu cited the example of Taiwan's WTO negotiations. As soon as the imposition of tobacco health hazard control tax is imposed to facilitate Taiwan's entry into the WTO at the end of this year, 70 percent of an estimated NT$10 billion in tax revenues will be allocated to support the health-care program.
The bureau is also planning to abolish the privileges of civil servants, who currently enjoy relatively low premium rates.
PFP member Lin Ching-lung (林慶隆), who is also an accountant, however, urged the bureau to be more active in demanding that insured individuals, insurers and local governments pay up their insurance fee arrears.
"Otherwise, according to related regulations, the bureau will lose its right to demand the arrears if the debts are not cleared in five years," Lin said.
The health insurance program is part of Taiwan's social security system and its fees are shared by the insured, the employers, local and central governments with various rates depending on the financial situation of the insured.
The total debts owed to the program have now reached NT$39.33 billion.
Liu emphasized that the bureau has made efforts in pressing for payment of arrears.
"Besides, the regulations stipulate that the debts will only become invalid in that time period if the bureau fails to demand payment," he said.
Shih Yu-chu (時玉珠), a manager at the bureau, further pointed out that the Executive Yuan has approved a decision that local governments should clear their debts, which run up to NT$18.18 billion.
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